29. Conclusion: Public service markets are becoming more difficult for government to manage.
30. An essential part of contracting-out public services is maintaining effective competition for government business, stimulating a constant pressure to innovate and improve. Against a background of increasingly large and dominant suppliers in some markets, in this section we consider: the need to guard against suppliers becoming too dominant to be allowed to fail; the risk of them losing control over all parts of their business, the need for meaningful consequences when they perform poorly; and the need to ensure SMEs can compete for government work.